Investment in Indonesia – Reasons and Opportunities
As the world is marching toward recession, people are looking for business opportunities to invest and diversify their assets. While the U.S. is struggling with unemployment problems, Europe is facing an energy crisis, and China is still battling a pandemic virus, it is time to find other alternatives. Investment in Indonesia could be an opportunity that people are looking for.
As the fourth most populated country in the world, Indonesia is one of the best investment destination countries. There are tons of reasons why people should invest in Indonesia. With the urge to find investment opportunities abroad, this is a chance that you do not want to miss.
This article will elaborate why you should invest in Indonesia. Furthermore, what hidden investment opportunities can you take to multiply your assets even in the midst of a recession.
7 Reasons Why Investing in Indonesia is Promising
Investing is not an easy job, unless you want to throw away your money. When you are looking for a place to invest, it is important to know what are the strengths, weaknesses, opportunities, and threats that the country has. Therefore, you need to know the reasons why investing in Indonesia is profitable.
Steady Increasing GDP
As an emerging country, Indonesia’s GDP is steadily increasing. In the last 10 years, Indonesia’s GDP has grown tremendously, from US$740 billion to US$1.2 trillion by the end of 2022. [1]
This data shows that Indonesia’s economy is constantly growing. Even during the pandemic, Indonesia only experienced a slight slowdown and recuperated relatively fast compared to other G20 countries.
The steadily increasing GDP of Indonesia is good news for investors. It means the economic activities keep growing all the time. While the world is struggling to escape the recession, Indonesia is already recuperating and growing.
A growing economy tends to translate to growing businesses and profits. Therefore, investing in Indonesia can be a way out of the recession threat.
Political Stability
As a democratic country, Indonesia is one of the countries with political stability. Political stability is a strong underlying factor for economic growth. People can focus on building their wealth and not worrying about how to survive in a conflict zone.
Besides, if the political situation is stable, the investors will be sure that their investments are safe. Nobody would like to invest in a country experiencing civil conflict because there is no guarantee that their money will be back.
For more than 20 years, Indonesia has undergone 5 presidential elections without significant conflict. With the stability of the political situation, you do not need to worry whether your investment will be safe or not.
Conducive Investment Climate
Indonesia has worked very hard to create a conducive investment climate for investors. The government has conducted various changes to ensure investors will have a great experience investing in Indonesia.
To support the desired economic growth, Indonesia is pursuing a massive infrastructure development, including airports, harbors, toll roads, and highways. The development is carried out evenly in all regions in Indonesia, from the most populated island to remote areas.
Not only that, but Indonesia also prepared energy requirements by building more power plants. The government is targeting an additional 35,000 MW of additional power generation capacity by 2029.[2]
To attract foreign investment, Indonesia also makes some changes to make investing in Indonesia easier and more profitable.
The changes include:
- Lowering corporate taxes.
- Reforming labor laws.
- Simplifying business licenses.
- Reducing bureaucratic and regulatory barriers to investment. [3]
Abundant Natural Resources
As an archipelago country, Indonesia was gifted with enormous natural resources as a supply for industries. The mining industry extracted liquified natural gas, and various metals, and became a backbone for the manufacturing industry.
By 2021, Indonesia has become the world’s largest nickel-producing country in the world, with a total production of 1 million metric tons. The nickel reserve in the existing mining location is estimated to reach 21 million metric tons. As the demand for it to make batteries and other electronic components is increasing, many countries will compete to buy them. [4]
Besides that, Indonesia also has natural beauties that spoil the eyes. A lot of tourists from all over the world and Indonesia itself are excited to enjoy the beauty of nature. According to the Central Bureau of Statistics, the numbers of foreign tourists are up to 3.92 million people by the end of 2022. [5]
With abundant natural resources, various kinds of business opportunities in Indonesia are ready to breed.
Demographic Bonus
With over 275 million people by the end of 2022, Indonesia has a demographic bonus with the majority of the people being in productive ages. Among those, more than 190 million people are of productive ages, according to the Directorate General of Population and Civil Registration, Ministry of Internal Affairs. [6]
With the young and technically trained workforce becoming the majority of the demography, the company will have an easy way to find skilled workers. Furthermore, Indonesian wages are among the lowest in Asia. The combination of cheap labor and material cost makes Indonesia an investment heaven for foreign investors.
Domestic Market
The demographic bonus is not only to potential laborers, but also to the potential market as well. As the 4th biggest population in the world, more than 53% of the people live in urban areas with a modern lifestyle and increasing purchasing power. [7]
The numbers of the middle class are steadily increasing, which makes them ready to buy any products and services out there. Having more than 200 million people as a potential market is tantalizing for businesses.
Not only that, Indonesian people are well-known to be adaptive to new cultures and technologies. This culture encourages start-ups and new businesses to grow quickly and implement any changes dynamically.
The domestic market is also the reason Indonesia is more resilient to recession and has a faster recuperation time than other countries. With such a big domestic market, it is not necessary for the majority of Indonesian companies to search for foreign markets in order to survive the recession.
Ready-to-Solve Problems
As a developing country, Indonesia still has many challenging problems to solve. Transportation, technology, food, and healthy life are some potential issues to solve and make profits as well.
Where there are difficulties, there lie opportunities as well. With a growing market and a society that needs changes for a better life, Indonesia has great potential to accommodate and grow new businesses.
Investment Opportunities in Indonesia
With so many reasons to invest in Indonesia, as previously described, there are many investment opportunities in Indonesia.
For giant investors, it is interesting to invest in plantation and mining industries with an orientation for export. The demand for plantation and mining products in the international market is steadily high. However, the entry barrier is also big because of its large scale.
For the alternatives, you can consider these businesses to invest and make profits.
Goat Milk Industry and Farm (Araca Milk)
Investment in Indonesia – With more than 275 million people living in the country, it is clear that all of them will need to eat. Therefore, the food and farm industry is one of Indonesia’s biggest business opportunities.
Food distribution is still a problem in Indonesia, which has many islands. This causes the incidents of stunting to keep happening despite the government’s efforts to solve them.
Stunting attacks children who have a chronic malnutrition, recurrent infection, and less stimulation. According to the Indonesia Nutritional Status Study in 2021, 24.4% of children in Indonesia are stunted. [8]
Drinking milk is one of the easiest ways to prevent stunting. Milk is easy to distribute, easy to consume, and has excellent nutritional properties. A glass of milk contains one-fifth of the calories children need each day.
Araca Milk is the first Etawa goat farm in Bali. They use modern techniques and technologies to raise the goats and produce high-quality goat milk, which is very good for preventing stunting in children.
According to some studies, goat milk has superior advantages over cow’s milk. It is easier to digest, relatively less allergenic, and has higher contents of some minerals.
However, goat milk is relatively less popular than cow milk in Indonesia. The production of cow milk is several times higher than goat milk. It is likely because dairy cows are more common in society than dairy goats.
Nevertheless, the production of goat milk is increasing steadily. According to the Indonesia Central Bureau of Statistics, the average increase in milk production yearly is around 14%.
With the increasing public awareness about the high nutritional content of goat milk, the demand for it is higher and higher. It also shows huge opportunities for the dairy goat farm business.
On the other hand, the demand for milk in Indonesia is quite high, but less than 20% comes from the local farm. The rest came from import. [9]
As a start-up business in this field, it is a big opportunity to invest in PT. Araca Milk Industry. Even in the recession, everyone still needs to take food and drink. That’s why this business is the best place to place your investment.
Check out their website for more information:
PT. Araca Milk Industry
- Website : https://aracamilk.com/
- Instagram : https://www.instagram.com/aracamilk/
- WhatsApp : +628113700387
- Youtube : https://www.youtube.com/@araca-milk-susu-kambing
- TikTok : https://www.tiktok.com/@aracamilk
- Twitter : https://twitter.com/AracaMilk
Business Address: Jl. Raya Singapadu No.10, Singapadu Kaler, Kec. Sukawati, Kabupaten Gianyar, Bali 80571.
Jual Susu Kambing Etawa Terdekat
Tourism Industry (Candi.id)
Investment in Bali – Tourism is one of the potential industries in Indonesia. Endowed with extraordinary natural and cultural wealth, Indonesia attracts so many tourists from all over the world.
Before the pandemic, the number of visits by foreign tourists reached 6.2 million visits. Although the pandemic hit the tourism industry, it is now rapidly recuperating. At the end of 2022, the number of visits bounced back to 3.92 million.
@candi.id.official Yuk sini ke Bali aja! Udah pada ramai loh? #andretaulani #pariwisatabali ♬ French music style, accordion, waltz – arachang
Most foreign tourists visit Bali as the most popular island in Indonesia. The beaches, other natural beauties, and unique cultural activities are reasons why many tourists are eager to visit Bali.
Candi.id is a rising start-up that has a goal to promote tourism and local businesses to the world, especially in Bali. With the ability and focus niche in content creation and digital marketing, Candi.id helps many businesses attract and get more clients.
With the rise of the internet of things and social media, the demand for Candi.id services is also rising. More tourists reached Candi.id to discover some attractive places to visit. More businesses hope to be promoted to acquire new customers. As an established content channel with high value and engagement, the potency of this business is great.
Candi.id is currently looking for investors, which could be a good investment in Indonesia. You can check their official website and social media account for further information.
- Website : https://candi.id/
- Instagram : https://www.instagram.com/candi.id.official/
- WhatsApp : +628118867897
- Twitter : https://twitter.com/candiidofficial
- Email : [email protected]
- Youtube : https://www.youtube.com/@candi2628
- TikTok : https://www.tiktok.com/@candi.id.official
Digital Marketing Industry (Arfadia)
Investment in Indonesia – Digital and internet marketing is currently rising in Indonesia. Among 275 million people, around 77% or 210 million are already using the internet in daily activities. [10]
More and more Indonesian people are familiar with transactions through the internet. The growth of the e-commerce and digital marketing industry in recent years is astonishing. The estimated e-commerce transaction in Indonesia will grow 20% per year and reach US$ 137.5 billion by 2025. [11]
With such growth in the internet and marketing industry, there is no doubt that digital marketing will have a huge impact in the future.
Arfadia is the best digital marketing agency company in Indonesia. Using digital marketing helps small and large businesses to establish strong branding and gain more loyal customers to grow the business.
Arfadia specializes in 360° marketing campaigns using both offline and online media. This company presents the new generation of SEO which focuses on the website and all aspects of the brands, including expertise, authoritativeness, and business trustworthiness.
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Not only that, Arfadia also provides communication and digital blueprint strategies with proven track record results. It also offers social media campaigns, paid ads, native marketing ads, and more than 20 digital and internet marketing services.
The all-in-one services they offer are proven to help their clients have transformational growth and acquire more customers. With more than a decade of experience in their field, PT. Arfadia Digital Indonesia is the best place to invest in the digital marketing industry in Indonesia. Investment Indonesia, Invest in Indonesia, Investing in Indonesia, Indonesia Investment, Investment in Indonesia.
Reach out to them through their official website and social media accounts.
PT. Arfadia Digital Indonesia
- Website : https://www.arfadia.com/
- Instagram : https://www.instagram.com/arfadia/
- Whatsapp : +628118867897
- Twitter : https://twitter.com/arfadia
- Email : [email protected]
- Youtube : https://www.youtube.com/user/ArfadiaMedia
Business Address : Raudha Building 1st Floor. JL. Kuningan Barat II No. 21, Mampang Prapatan. Jakarta Selatan, 12710, Indonesia.
All opportunities above have the potential to grow larger because of the high demand and unsaturated market. Take this opportunity to investment in Indonesia and grow your assets even amid the recession.
Source:
https://www.macrotrends.net/countries/IDN/indonesia/gdp-growth-rate
https://www.indonesia-investments.com/
https://data.worldbank.org/country/indonesia
https://www.state.gov/reports/2021-investment-climate-statements/indonesia/
https://www.investindonesia.go.id/en/investing-in-indonesia/reasons-to-invest-in-indonesia
https://blog.arfadia.com/araca-milk-innovation-for-goat-milk-industry-in-indonesia/
https://stunting.go.id/percepat-turunkan-stunting-12-provinsi-harus-jadi-prioritas/
https://tegalkab.bps.go.id/indicator/24/171/1/produksi-susu-sapi-dan-susu-kambing-menurut-bulan.html
https://pusvetma.ditjenpkh.pertanian.go.id/upload/statistik/1644549920.Buku_Statistik_2021.pdf